OSAGE BEACH, Mo. — A plan to replace the faded and worn decorative banners that hang from light poles along Osage Beach Parkway became controversial on Thursday, as Osage Beach aldermen debated whether the city should give preference to local companies when awarding bids.
Osage Beach Assistant City Administrator Mike Welty recommended the Board of Aldermen approve a bid of $23,660 from Street Décor Inc. of Reno, Nev., for 130 street banners with brackets to be mounted on light poles along Osage Beach Parkway.
Welty said 11 companies submitted bids for the street banners, a project for which the city had budgeted $50,000. Only two of the 11 companies fulfilled all the city’s requirements, though: Street Décor, whose bid came to $182 per banner, and Smart Postal Centers of Osage Beach, whose bid was $275 per banner. The city had planned on purchasing 90 banners, so Smart Postal Center’s bid came in just below $25,000 — less than half of what the city had budgeted — while Street Décor’s bid was around $16,000.
The Street Décor bid came in so low that Welty asked that the board approve the purchase of 40 additional banners, beyond the 90 specified in the bid proposal. That would allow the city to install them on every other light pole, instead of every third pole.
Not only was Street Décor’s the low bid, its banners are made from acrylic-coated polyester, a more durable material than the competitors’ banners, according to Welty. Also, he said the company’s bracket hardware design allows for easier installation and removal.
But Alderman Tom Walker questioned whether the Nevada-based company was the right choice.
“I understand there are two issues here,” Walker said. “There is price, and there’s quality. But also involved here is what many of us have proposed and are very supportive of, and that’s economic development for local businesses, taxpaying businesses in Osage Beach. We want to consider that, regardless of price, in my opinion.”
Walker contended that the Smart Décor materials actually might not be as durable as Smart Postal’s heavier, double-sided polyester vinyl. He also pointed out that Smart Décor appears to operate out of “a bungalow in a residential area” in Reno.
“That, in itself, isn’t too encouraging,” he said.
Walker questioned whether the company is able to manufacture the banners and hardware at a price well below its competitors from a house. He also said Smart Postal would be better able to service the city if there were any problems with the banners.
“If anything does happen to the banners, they can take care of them easily right here,” he said.
Tim Gardner of Smart Postal Centers attended Thursday’s meeting, where he demonstrated to aldermen the ease with which his company’s banner poles can be assembled and disassembled. He also said his company continually upgrades its equipment to have the best technology available to print banners.
Alderman Kevin Rucker said the city staff’s recommendation of Street Décor is consistent with the purchasing procedures established by the board at the end of last year — a process the city spent about two years refining.
He read from the purchasing ordinance, which stipulates if competing vendors meet the bid specifications the city “accepts responsibility to its residents to ensure that maximum value is obtained for each public dollar spent.”
Rucker said that since both Street Décor and Smart Postal met all the bid specifications, preference should be given to the local company “when quality is equal or better and delivery price is the same or less.”
“So what we have here is quality that is better, in some people’s opinion, but we have price that is less with Street Décor,” he said. “Both of these vendors have met specifications and Street Décor is less money.”
Rucker’s motion to accept Street Décor’s bid was approved by a 4-2 vote, with Alderwoman Phyllis Marose joining Walker’s opposition.
Marose said she appreciated the city’s due diligence to fully vet both proposals, but had “strong convictions” that it is best to award the bid to a local company, despite the higher cost.
After the vote, Alderman Jeff Betherum asked the city staff to research a way to incorporate into the purchasing ordinance a way to weight the bid process to favor local vendors. If a local vendor’s bid is within 10 percent of the lowest bid from an outside vendor, for example, the city would award the contract to the local company.
Welty and City Attorney Ed Rucker agreed to examine the issue. Welty said the city staff typically tells the board when a local vendor’s bid is within 10 percent of an outside firm’s low bid so that, even if staff recommends the low bid, the board has the information available if they want to pay a bit more for a local company.
Betherum said putting a set range in the ordinance would remove any ambiguity and provide a fair and objective way for the board to weigh bids to favor local businesses.
In other business Thursday, the board also:
- Approved a $32,183 construction contract with APAC-Missouri Inc. for Hatchery Road overlay. The city had budgeted $65,000 for the work.
- Authorized a State Block Grant Agreement with the Missouri Highways and Transportation Commission for a taxiway reconstruction project at Lee C. Fine Airport. The total cost of the project is $224,542 for which the city is responsible for 10 percent and the Federal Aviation Administration paying 90 percent.
- Authorized a $22,940 contract with Crawford, Murphy & Tilly for design and construction engineering for apron improvements at Lee C. Fine Airport. The city will be responsible for 10 percent of the cost.
- Approved budget amendments for the taxiway and apron projects at the airport.
